At 10:30 (AEST), the benchmark S&P/ASX 200 index was down 33.20 points or 0.50 percent at 6,636.70, while the broader All Ordinaries index was down 32.50 points or 0.47 percent at 6,887.50.
A global shift in sentiment regarding COVID-19 combined with concerns over a local outbreak to hamper energy companies, which were down a combined 2 percent in early trade
"The deterioration in sentiment hit commodity markets. Copper, crude oil and aluminium dropped 1.5 percent to 3 percent," CMC Markets chief market strategist Michael McCarthy said.
"The exception was iron ore, which added to recent gains and is now approaching all-time highs."
Most other sectors were firmly lower however financials, healthcare and real estate managed a modest lift.
In the financial space, the big banks were mixed with Commonwealth Bank up (0.58 percent), ANZ down (0.43 percent), National Australia Bank down (0.22 percent) and Westpac Bank down (0.60 percent).
Mining stocks also varied with Rio Tinto down (1.73 percent), BHP down (0.83 percent), Fortescue Metals up (0.33 percent) and goldminer Newcrest down (1.47 percent).
The country's oil and gas producers dropped with Oil Search down (2.23 percent), Santos down (1.90 percent) and Woodside Petroleum down (2.17 percent).
Australia's largest supermarkets sank with Coles down (0.59 percent), and Woolworths down (0.93 percent).
Meanwhile telecommunications giant Telstra was unchanged (0 percent), the national carrier Qantas plummeted (1.64 percent) and biomedical firm CSL bounced (0.64 percent).
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